S&P lowers Station Casinos view to stable

Standard & Poor’s said it revised the outlook on Station Casinos LLC to stable from positive and affirmed all of its ratings, including its B corporate credit rating.

S&P also said it affirmed the CCC+ rating on the company’s senior notes due 2021 following news of a proposed $300 million add-on to the notes.

The add-on would bring the total size of the issue to $800 million.

The recovery rating on the notes remains at 6, reflecting 0 to 10% expected default recovery.

The proceeds, along with a potential modest draw on its revolving credit facility, will be used to fund a dividend to the company’s owners and pay fees and expenses.

The outlook revision reflects an expectation that leverage will remain at more than 6x through 2015 as a result of the incremental debt that Station is incurring to fund a distribution to owners, S&P said.

The ratings also consider the company’s fair business risk profile and highly leveraged financial risk profile, the agency said.

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